TRADE Order Types
TRADE Order Types specify which IB's trading algorithm is used for execution and the algorithm's parameter values (if any). There are two main types: Basic, which do not take any algorithm parameters, and Advanced, which have additional algorithm parameters and can be customized. TRADE offers some preset order types that can be used as-is, or you can create your own. Once created, an Order Type can be used without entering the algorithm parameters over and over, therefore making order entry a breeze.
  • Another goal of TRADE Order Types was to simplify the use of IB's algorithms. To that end, not all the algorithm parameters may be visible and customizable.
  • All Order Types are sent using IB's SmartRouting. SmartRouting continuously evaluates fast changing market conditions and dynamically re-routes all or parts of your order seeking to achieve optimal execution. You can read more about it here.
Supported IB Trading Algorithms
BASIC Description
Limit A Limit order is an order to buy or sell at a specified price or better. The Limit order ensures that if the order fills, it will not fill at a price less favorable than your limit price, but it does not guarantee a fill. It cannot be used in automatic rebalances.
Market A Market order is an order to buy or sell at the market bid or offer price. A market order may increase the likelihood of a fill and the speed of execution, but unlike the Limit order a Market order provides no price protection and may fill at a price far lower/higher than the current displayed bid/ask.
Market On Close A Market-on-Close (MOC) order is a market order that is submitted to execute as close to the closing price as possible.
Market On Open A Market-on-Open (MOO) order is a market order that is automatically submitted at the market's open and fills at the market price.
ADVANCED Description
VWAP - Best Efforts This algorithm seeks to achieve the Volume-Weighted Average price (VWAP), calculated from the time you submit the order to the close of the market.
Percent Of Volume This algorithm seeks to participate with volume at a user-defined rate. Order quantity and volume distribution over the day is determined using the target percent of volume you entered along with continuously updated volume forecasts calculated from TWS market data.